Bridgewater Associates founder Ray Dalio has made a striking pivot in his investment outlook, advising investors to allocate up to 15% of their portfolios to Bitcoin or gold as the U.S. debt burden intensifies.
Speaking on the Master Investor podcast, Dalio explained the rising risks posed by fiscal imbalances and long-term currency devaluation, urging a greater focus on hard assets. “If you were optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin,” Dalio said.
From 1% to 15%: A Strategic Shift
This marks a major revision from his 2022 stance, when Dalio recommended just 1–2% allocation to Bitcoin. The updated view comes amid projections of $12 trillion in new U.S. Treasury issuance in the coming year—needed to finance America’s growing $36.7 trillion national debt.
“We’re entering a debt doom loop,” Dalio warned, citing unsustainable borrowing and dollar debasement as structural risks.
A U.S. Treasury report on Monday confirmed the urgency, projecting $1 trillion in Q3 borrowing, up $453 billion from earlier estimates, followed by $590 billion in Q4.
Dalio Still Prefers Gold—but Bitcoin’s Role Is Growing
Despite recommending both assets, Dalio reiterated a preference for gold over Bitcoin, citing concerns around blockchain transparency, state surveillance, and potential code-level vulnerabilities.
“Governments can see who is doing what transactions on it,” he cautioned, suggesting that Bitcoin’s traceability could make it unsuitable as a reserve currency under current conditions.
Still, Dalio acknowledged the utility of both assets as diversifiers when fiat currencies are under pressure. The 15% recommendation is not fixed between Bitcoin and gold, giving investors flexibility to adjust the ratio based on their outlook.
Key Takeaways
- Dalio recommends 15% allocation to gold or Bitcoin, up from 1–2% in 2022.
- The shift reflects concern over $12T in projected Treasury issuance and unsustainable U.S. debt.
- Gold remains his preferred hedge, but Bitcoin is now a serious contender in the “hard money” category.
- Bitcoin’s transparency and security risks keep Dalio cautious about its use as sovereign money.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.